Optimizing Ads with Google Conversion Optimizer
The Google Conversion Optimizer is available for free for those with Adwords accounts who have managed a campaign with at least 30 conversions during the last 30 days. It is designed to increase conversions while decreasing costs and save time over managing bids manually.
The Conversion Optimizer analyzes conversion tracking data to determine the frequency of each type of auction leading to a conversion. Based on that performance, it creates a prediction model to determine which auctions will perform successfully in the future. Your bids are adjusted and optimized from that data automatically to best target your advertising dollars by showing your ads when they are most likely to convert.
For example, by examining historical and current performance of campaigns, the Conversion Optimizer can determine the sites that send traffic but few conversions as well as those that send traffic and result in conversions. It lowers the bid levels for the non-converting sites until the ads stop appearing to save the budget for higher performing sites. The tool increases the ad appearances on the higher converting sites by adjusting those bids upwards to insure placement. Campaigns using the Optimizer get an average of 21% increase in conversions with a 14% decrease in CPA.